What happened Shares of Nokia (NYSE: NOK) were heading toward a market-beating return in October but the Finnish telecom networking systems expert stumbled at the goal line. A disappointing third-quarter earnings report led to a big sell-off near the end of the month, resulting in a 13.8% loss for the full month, according to data from S&P Global Market Intelligence. ^SPX data by YCharts So what Nokia's third-quarter earnings held steady year over year at $0.06 per diluted share, measured in local currencies. Revenues fell 7% to $6.3 billion. The bottom-line result was in line with the expectations of European analyst firms but sales came in 3% below analyst estimates. The company also issued modest guidance for operating margins and top-line sales in the fourth quarter, and management offered a sobering analysis of the market for telecom infrastructure upgrades in 2021. Image source: Getty Images. Now what Nokia CEO Pekka Lundmark said that his company has made "good progress" in many ways but it isn't enough. Nokia lost a part of the lucrative 5G system contract with Verizon (NYSE: VZ) to South Korean electronics giant Samsung (OTC: SSNLF), and Lundmark would rather lose more deals than succumb to margin-destroying price wars for large 5G contracts. "We expect next year to be a challenging, a year of transition with meaningful headwinds from North America, as I have already mentioned, and further investment requirements in 5G," Lundmark said on the earnings call. "I want to be very clear that I believe the potential of Nokia is substantial, but delivering on that promise will not happen overnight." Investors hated that long-term focus because it comes with the potential for short-term pain. Personally, I think that Nokia is making a wise and sustainable business decision here. The stock looks downright cheap right now, trading at just 9 times free cash flow and 32% below its annual highs. 10 stocks we like better than NokiaWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Nokia wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 20, 2020 Anders Bylund has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.Source